Renault pays back part of government loan

The loan, given to Renault in April 2009 as the automotive industry was hit by the worldwide recession, totalled three million euros.

Renault has now paid back a third of the total loan after Renault Group sales rose 5.7 per cent to nearly 600,000 vehicles in the third quarter of 2010.

This compares favourably to a global market increase of 4.6 per cent and is largely down to the introduction of the new Renault Megane Coupe-Cabriolet and Renault Wind roadster.

The ongoing success of the Clio supermini, particularly in its home French market, has also boosted sales and led to Renault recording growth in all but one month during the third quarter.

Renault now expects to grow by nine per cent compared to initial expectations of eight per cent for 2010 as a whole.

In the report, Renault said: "Renault’s objective for 2010 remains to generate positive free cash flow. Supported by strong international markets and share gains, global sales are forecasted at more than 2.5 million vehicles in 2010."

Sales in the next few years will be boosted by four new electric vehicles and a next generation Clio, with styling based on the Renault Zoe Z.E.

Future models are expected to follow the design philosophy seen in the Renault DeZir concept car, which was revealed to the world at the Paris Motor Show.

The new ‘desirable’ language is expected to influence the next generation of Renault cars and continue the brand’s growth in Europe.